A new partnership for cross-border payments and remittances will use the National Bank of Cambodia’s blockchain-based payment system.
Malayan Banking Bhd (Maybank) has signed a memorandum of understanding (MoU) with the National Bank of Cambodia (NBC) on cross-border payments and remittances.
On Oct. 16, Malaysian business news outlet The Edge Markets reported that the largest bank in Malaysia, Maybank, will work together with the National Bank of Cambodia to promote cross-border payments and remittances.
With the MoU, Maybank Malaysia, Maybank Cambodia and NBC will explore the possibility of transferring funds between Cambodia and Malaysia through NBC’s blockchain-based Bakong payment system and Maybank’s Maybank2u digital platform.
Chea Serey, the assistant governor and director-general of central banking at NBC said that the Bakong system will enhance the current payment system at both domestic and regional levels, adding:
“The MoU will enable both institutions to reach another level of financial cooperation in further leveraging the technology to benefit the people in Cambodia and Malaysia.”
More than 66% of all mobile banking transactions in Malaysia were conducted through the Maybank App in 2018, while more than 52% of all internet banking transactions went through Maybank’s digital platform, The Edge Markets states.
NBC began testing its Bakong mobile app earlier in July. At the time, NBC said that the peer-to-peer payments app would help the country’s unbanked populace and improve financial inclusion.
The use of blockchain tech for remittances is growing
In July, Philippines-based UnionBank finished a blockchain-based remittances pilot for payments between the Philippines and Singapore. The pilot was the result of a partnership between UnionBank and Singapore-based OCBC Bank, wherein the bank used blockchain-based tokenized fiat to remit from OCBC to an account holder at a rural Cantilan Bank.
In April, the United States-based Western Union Company partnered with Philippines-based e-wallet provider Coins.ph to enable Filipinos to conduct cross-border money transfers.